HHS awards $5.28M parking services contract to 5600 Fishers Lane LLC, a sole-source award

Contract Overview

Contract Amount: $5,273,756 ($5.3M)

Contractor: 5600 Fishers Lane LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-01

End Date: 2026-10-31

Contract Duration: 425 days

Daily Burn Rate: $12.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 5600 FISHERS LANE PARKING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20008

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.3 million to 5600 FISHERS LANE LLC for work described as: 5600 FISHERS LANE PARKING Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The contract duration of 425 days suggests a need for ongoing parking management. 3. Awarded by the Office of the Assistant Secretary for Administration, indicating administrative support functions. 4. The firm fixed-price structure aims to control costs, but competition dynamics are absent. 5. Located in Washington D.C., impacting local workforce and transportation infrastructure. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract value of $5.28 million for parking services over approximately 14 months appears high, especially given the sole-source nature of the award. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar government contracts. The absence of competition suggests that the government may not have achieved the best possible value for these services. Further analysis would be needed to determine if the price is justified by the specific services provided and the location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of Health and Human Services (HHS) likely determined that only one source was capable of meeting the requirement, or that a competitive process was not feasible or in the government's best interest. The lack of competition means there were no other bidders to compare against, and price discovery through market forces was bypassed.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pressure to drive down prices. The government's negotiating position is weakened without alternative offers.

Public Impact

Federal employees and visitors at 5600 Fishers Lane will benefit from managed parking services. The contract ensures the availability and maintenance of parking facilities. The geographic impact is localized to Washington D.C., affecting local traffic and parking availability. Workforce implications are minimal, likely involving a small team for parking management and enforcement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for money.
High contract value for parking services warrants scrutiny of necessity and scope.
Lack of small business participation may miss opportunities for economic inclusion.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a specific entity suggests a potentially established relationship or unique capability.

Sector Analysis

The parking services sector for government facilities is a niche but essential component of administrative operations. While not a large market segment on its own, it is critical for the functioning of agencies. Comparable spending benchmarks are difficult to establish without knowing the specific scope of services (e.g., valet, security, maintenance) and the size of the facility. However, government contracts for facility support services often involve significant sums, and the pricing is typically scrutinized for value.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature further limits the ability to incorporate small business participation. This means that opportunities for small businesses to provide parking management or related services under this specific contract are likely non-existent, potentially impacting the small business ecosystem in this area.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' Office of the Assistant Secretary for Administration, which awarded the contract. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is limited by the sole-source nature, but contract award details are publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Management Services
Administrative Support Services
Parking Infrastructure Management

Risk Flags

Sole-source award lacks competitive justification.
High contract value for parking services requires detailed cost-benefit analysis.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.3 million to 5600 FISHERS LANE LLC. 5600 FISHERS LANE PARKING

Who is the contractor on this award?

The obligated recipient is 5600 FISHERS LANE LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-10-31.

What specific services are included under this $5.28 million parking contract?

The provided data indicates the contract is for 'Parking Lots and Garages' (NAICS 812930). However, the specific services encompassed within this $5.28 million award are not detailed. Typically, such contracts can include parking management, access control, maintenance, security, lot sweeping, snow removal, and potentially shuttle services or valet parking. The firm fixed-price nature suggests a defined scope of work. Without a detailed statement of work, it's impossible to ascertain the exact services rendered, which is crucial for evaluating the value proposition.

Why was this contract awarded on a sole-source basis instead of being competed?

The data states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) and is a 'DEFINITIVE CONTRACT'. While the specific justification for the sole-source award is not provided, common reasons include: the existence of only one responsible source, a compelling urgency, or a national emergency. For parking services, it might be argued that a specific location or existing infrastructure necessitates a particular provider, or that the value falls below thresholds where full and open competition is mandated. However, sole-source awards generally bypass the benefits of competitive pricing.

How does the contract duration of 425 days compare to typical parking service contracts?

A contract duration of 425 days (approximately 14 months) is relatively standard for service contracts, especially those that are not multi-year. This duration allows for a defined period of service delivery without committing to longer-term obligations, which can be beneficial for managing budgets and adapting to changing needs. For parking services, this timeframe is sufficient to cover seasonal variations and routine maintenance. Longer durations might be seen in contracts involving major infrastructure upgrades or extensive facility management, but for ongoing operational parking services, 14 months is a common term.

What is the significance of the contract being awarded to '5600 Fishers Lane LLC'?

The award to '5600 Fishers Lane LLC' suggests that this entity is the specific contractor responsible for providing the parking services. The name itself implies a direct connection to the location where the services are being rendered. As a sole-source award, it indicates that the government identified this particular LLC as the sole capable or appropriate provider for the required parking services at 5600 Fishers Lane. Further investigation into the contractor's background and past performance would be necessary to assess their suitability and track record.

What are the potential risks associated with a sole-source contract for parking services?

The primary risk of a sole-source contract for parking services is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may pay a premium for services that could be obtained at a lower price through a competitive process. Another risk is a potential lack of innovation or service improvement, as the contractor may have less incentive to enhance offerings when they are the only option. Furthermore, it raises concerns about whether the government adequately explored all available sources or if there were other capable providers who were not considered.

How does the location (Washington D.C.) influence the cost and scope of this parking contract?

The contract is located in Washington D.C., a major metropolitan area with high real estate values and significant demand for parking. This location likely contributes to the overall cost of the contract, as labor, maintenance, and operational expenses are generally higher in the D.C. area compared to less urbanized regions. High demand can also influence the scope of services required, potentially necessitating more robust management, security, and traffic control measures. The specific address, 5600 Fishers Lane, likely refers to a significant federal facility, further justifying the contract's value and scope.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Parking Lots and Garages

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 N WACKER DR, CHICAGO, IL, 60606

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,556,911

Exercised Options: $5,273,756

Current Obligation: $5,273,756

Actual Outlays: $1,869,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline